Ms. Shelley Vybiral
8325 Hessinger Dr.
Erie, PA 16509
RE: The tariff classification of a magnetic coupling and parts from Canada
Dear Ms. Vybiral:
In your letter dated October 30, 2002 you requested a tariff classification ruling. The articles in question are described as a magnetic coupling and parts. Descriptive literature was submitted.
Based on the information submitted the magnetic coupling is a mechanical device designed to transmit torque by magnetic attraction. The coupling consists of a “driver magnet assembly” and a rotor assembly. The “driver magnet assembly” contains a permanent magnet and is designed to mount on the shaft of a motor or a driver shaft. The “rotor assembly” also contains permanent magnets mounted in a metal shaft. During operation, the rotor assembly and the driver magnet assembly are coupled together and transmit torque by means of the attraction between the permanent magnets. You indicate that Snap-tite purchases the coupling and its parts for use in the assembly of centrifugal pumps.
The applicable subheading for the complete magnetic coupling will be 8483.10.3050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other transmission shafts. The rate of duty is free.
The applicable subheading for the driver magnet assembly and the rotor assembly, if presented separately, will be 8483.90.8080, HTSUS, which provides for parts of transmission shafts as “other” parts. The general rate of duty will be 2.8 percent ad valorem.
You also request a ruling on the country of origin marking requirements for the magnetic coupling and its parts, which are claimed to be goods of Canada, a NAFTA country, that are later to be further processed in the U.S. into a finished article, a centrifugal pump.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
However, the country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin” within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.
Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.
In order to determine the country of origin marking requirements we must first apply the NAFTA Marking Rules in order to determine whether the imported coupling and parts are “goods of a NAFTA country", prior to being further processed in the U.S. Then we must determine whether Snap-tite is the ultimate purchaser within the meaning of section 134.35(b). Section 134.35(b) of the regulations, provides that
a good of a NAFTA country which is to be processed in the United States in a manner that would result in the good becoming a good of the United States under the NAFTA marking rules is excepted from marking. Unless the good is processed by the importer or on its behalf, the outermost container of the good shall be marked in accord with this part.
We do not have sufficient information to apply the NAFTA rules set forth in Part 102 of the regulations to the facts of this case.
Additional information detailing the origin of the magnetic coupling and its parts, as well as, the production of the centrifugal pump in the United States is required. When this information is available, you may wish to consider resubmission of your request. If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S. Customs, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kenneth T. Brock at 646-733-3009.
Robert B. Swierupski